ARCIL Files Draft IPO Papers With SEBI

3 Aug 2025 , 07:44 PM

Asset Reconstruction Company (India) Ltd (ARCIL), the country’s first asset reconstruction company, has filed its draft red herring prospectus (DRHP) with capital markets regulator SEBI to launch its initial public offering (IPO).

The issue will be a pure offer for sale (OFS) of up to 10.5 crore equity shares of face value ₹10 each. The company itself will not receive any proceeds from the IPO.

Among the selling shareholders are:

• Avenue India Resurgence, planning to offload up to 6.8 crore shares
• State Bank of India, selling 1.9 crore shares
• Lathe Investment Pte., offering 1.6 crore shares
• The Federal Bank, divesting 10.3 lakh shares

The book-running lead managers to the issue are IIFL Capital Services, IDBI Capital Markets & Securities, and JM Financial.

Despite the partial exit, ARCIL’s promoters Avenue India and State Bank of India will continue to hold a majority stake and exercise significant control over the company’s operations post-listing. As of August 1, 2025, promoters held a combined 89.68% stake in ARCIL, according to regulatory filings.

Founded in 2002, ARCIL is a leading player in the business of acquiring and resolving stressed financial assets from banks and financial institutions.

For FY24, ARCIL was the second most profitable ARC in the country, posting a standalone profit of ₹305.3 crore. It also ranked as the second largest ARC by assets under management (AUM), with ₹15,230 crore in AUM as of March 31, 2024, according to the DRHP.

ARCIL’s operations span three core verticals corporate loans, SME and other loans, and retail loans and classify assets based on their resolution strategies.

As of March 31, 2025, the company had acquired ₹72,657.3 crore worth of principal debt, paying ₹38,155.6 crore, or 52.51% of the total principal. Total recoveries stood at ₹28,459.7 crore.

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